Savings and Investments

Question 1

What is individual savings account (ISA)

Answer 1

ISAs allow you to save without paying tax on the interest or profits earnt.
ISAs often have a limit on the amount you can put in each year.

Question 2

What are the 4 main types of ISAs?

Answer 2

• Cash ISA
• Stocks and shares ISA
• Innovative finance ISA
• Help to buy ISA

Question 3

What is a cash ISA?

Answer 3

A savings account where interest is paid tax free.

Question 4

What are stocks and shares ISAs?

Answer 4

Funds are invested in shares or bonds, and profits/returns earned are tax free.

Question 5

What are innovative finance ISAs?

Answer 5

Interest is earned from lending money to other people or companies through peer to peer lending.

Question 6

What is help to buy ISAs?

Answer 6

Help buyers save to buy property

Question 7

What is a deposit and savings account?

Answer 7

Is an easy access savings account allowing instant access to users savings.
Pays a variable amount of interest (taxable)

Question 8

What is a fixed deposit account?

Answer 8

pays a set amount of interest over a set period of time. You are not able to withdraw during this time.